Making Tax Digital for landlords explained

TenancyVault availability: Bookkeeping and bank import are included from Solo. HMRC connection and direct filing workflows are subject to production approval and release; public direct filing is not yet available. Product filing steps below describe the intended workflow, not a currently available public submission service. Check current scope before relying on software for a deadline.

Making Tax Digital (MTD) for Income Tax changes how in-scope individual landlords keep records and report to HMRC. It adds digital records and cumulative updates, followed by a tax return through compatible software. These are HMRC-wide tax rules; this guide is written for landlords managing property in England.

What MTD for Income Tax is

MTD for Income Tax is the requirement to:

1. Keep digital records of your rental income and expenses
2. Submit a summary of those figures to HMRC four times a year (quarterly updates)
3. Make any required year-end adjustments and review the latest calculation
4. Submit the tax return through compatible software, including other income and reliefs where relevant

Quarterly updates are not tax returns or tax payments. You still finalise your position after the year ends.

Who it applies to

For individual landlords and sole traders, qualifying income generally combines gross property and self-employment income before expenses. Check the relevant earlier year’s income and any exemptions using HMRC’s eligibility guidance.

Start date	Qualifying income used
6 April 2026	Over £50,000 in 2024/25
6 April 2027	Over £30,000 in 2025/26
6 April 2028	Over £20,000 in 2026/27

Some people can join voluntarily; others qualify for an exemption. If you already use MTD and your income falls, check the exit rules rather than assuming one lower-income year ends your obligations.

What it means in practice

Digital record keeping

Keep the required income and expense records digitally. Spreadsheets can be part of the process when connected to compatible bridging software by digital links; they cannot complete submissions alone.

Quarterly updates

You submit a summary of your income and expenses to HMRC four times per year. A quarterly update is not a tax payment — it is a record of your figures so HMRC can track your position through the year.

Standard updates accumulate from the start of the tax year:

• Quarter 1: 6 April to 5 July
• Quarter 2: 6 April to 5 October
• Quarter 3: 6 April to 5 January
• Quarter 4: 6 April to 5 April

Calendar update periods are also available. See periods and deadlines and corrections.

End-of-year

Review the full-year records, make required adjustments and include other income, gains and reliefs. You still submit a Self Assessment tax return, using compatible MTD software, normally by 31 January after the tax year. The quarterly updates do not replace it.

What has not changed

• The categories of allowable expenses for landlords remain the same
• Quarterly updates are summaries, not tax payments
• MTD does not change what you are taxed on — only how and when you report it

Common mistakes

• Assuming a spreadsheet completes MTD: it can hold digital records, but needs compatible submission software and digital links
• Not signing up with HMRC — software alone is not enough; you need to complete HMRC’s own MTD sign-up
• Mixing personal and business transactions — keeping personal transfers separate from your allowable expense records is important for accurate quarterly totals
• Assuming all penalties are waived: there are no late-quarterly-update penalties for 2026/27, but updates remain required before the return. Late-return and payment consequences still apply; later mandatory quarterly updates can attract points. Check HMRC’s penalty rules.

How TenancyVault helps

From Solo, TenancyVault offers bookkeeping and bank import. You can:

• Keep digital income and expense records per property
• Import bank statements (CSV or PDF) and review transactions

HMRC connection, direct updates and year-end filing are subject to production approval and release, and are not currently available as a public filing service. Check current product scope and use currently supported compatible software for a live deadline.

Related guides

• Quarterly updates explained
• How to keep digital records for rental income
• Quarterly deadlines for landlords

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Not legal or tax advice. This guide is for information only. If you are unsure about your MTD obligations or tax position, consult a qualified accountant or tax adviser.